Independents helping to fuel Broo Brewery growth
Broo Limited has enjoyed a strong second half to its 2018 financial year with increases in retail revenues, domestic wholesale and consolidated revenues, helped by expansion through the independent retail market.
The company said it is pleased to see the continued wholesale growth and that it is focusing on increasing domestic sales and distribution in the year ahead.
“Availability of Broo products has now been expanded nationally via Australian Liquor Marketers (ALM) and independent retail banner groups,” the company said in an ASX statement. “Greater roll out, in store presence and consumer awareness combined with expanded distribution has significantly increased sales volumes of the Broo brands.”
The company also said that its Broo Retail business is performing strongly with both Mildura Pub and Sorrento Brewhouse operations “trading in line with expectations”. Broo added: “The company is pleased to see this category provide increased gross margin, strengthened on-premise sales and further product awareness.”
Broo also has a strong presence in the China market with its distribution partner, Beijing Jihua Information Consultant continuing to grow sales and distribution of Broo products in China.
The company has a seven-year agreement with Jihua on a ‘take or pay’ basis for 1.5 billion litres of Broo Premium Lager, of which Broo says “based on the full seven year term of the distribution arrangement, the aggregate distribution revenue generated for Broo is approximately $120m”.
Broo is also progressing plans for its ‘World’s Greenest Brewery’ project and is currently in discussions with potential joint venture partners for the development, with a further update to be “provided in due course”.